INA

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION IN
UNITED STATES


Iona Energy Inc. ("Iona" or the "Company") (TSX VENTURE:INA) announces its
financial results for the three months and six months ended June 30, 2013. 


HIGHLIGHTS FOR THE PERIOD ENDED JUNE 30, 2013

Financial



--  Total assets as at June 30, 2013 of CAD$516.6 million (June 30, 2012 -
    CAD$167.2 million). 

--  Net income for the three months ended June 30, 2013 of CAD$9.4 million
    (2012 loss - CAD$2.9 million) and a net loss of CAD$2.9 million (2012 -
    CAD$3.9 million) for the six months ended June 30, 2013. 

--  Of total revenues of $12 million for the three months ended June 30,
    2013, $8.6 million was generated from oil production and $3.4 million
    was generated from gas production. The average realized oil price in the
    period was USD$102 compared to average Brent oil prices in the period of
    USD$102 and USD$10 mcf for gas. 

--  The Company has tax pools of approximately USD$303 million and does not
    expect to pay UK taxes until 2016 or later. 

--  Iona is not currently subject to any crown or third party royalties on
    any revenues. 

--  On June 20, 2013, the Company proposed the issuance of a Senior Secured
    Callable Bond Issue of USD$250-300 million. Proceeds of the bond will be
    used to refinance its current Senior Secured Borrowing Base Facility of
    which approximately USD$139 million of debt is drawn, to partially
    retire its existing structured energy derivative transaction and enable
    the Company to fund the delivery of its Orlando and Kells projects to
    first oil, as well as mature other projects in the pipeline of
    development opportunities. 



Operational 



--  Average net production increased from 316 boepd in Q1 2013 to 1,578
    boepd in Q2 as a result of first oil from Huntington. 



Trent & Tyne ("T&T")



--  The net production from the T&T fields to Iona during the three and six
    months ended June 30, 2013 was 3.9 MMcf/d and 2.9 MMcf/d respectively. 

--  As of August 27, 2013, T&T production was 44 MMcf/d, net 9 MMcf/d to
    Iona. 



Huntington



--  The Huntington field commenced oil production on April 12th, 2013, with
    gross production initially limited to 7,300 bbls/d. 

--  On June 5th, 2013, first gas was exported from the Huntington Field, of
    which Iona owns a 15% working interest and a 2.55% royalty interest. 

--  On July 18th, 2013, Huntington the Company reached a new production
    record of approximately 27,400 boepd. 

--  Iona has been informed by the operator of the Huntington Field, E.ON
    E&P, that production on the morning of August 28th was a steady 31,500
    boepd, and the Company expects Huntington production to reach the
    production unit capacity of 34,500 boepd during September. 

--  The operator confirms that higher than expected productivity in the
    development wells has been sustained. Reservoir performance also
    provides encouragement with strong early performance, exceeding the
    operator's pre-development estimations. 

--  As part of the Huntington acquisition, the Company will acquire Block
    22/14d located in the Central North Sea, immediately to the south of
    Block 22/14b, containing the Huntington Palaeocene oil field, the
    Jurassic Fulmar, and the Triassic Skagerrak discoveries in which Iona
    has a 15% stake. Iona plans to remap both the Jurassic targets and
    Triassic discoveries in the near-term, and future appraisal could see
    these as candidates for development through the existing infrastructure
    at the producing Huntington field. 



Orlando



--  On April 16, 2013 the Department of Energy and Climate Change ("DECC")
    advised the Orlando joint venture partners that it has approved the
    Orlando Field Development Plan submitted by the partners. 



Subsequent Events



--  On June 28, 2013, the Company amended the Sales and Purchase Agreement
    with Carrizo in respect of the Huntington acquisition. Under the terms
    of the sale and purchase agreement, total consideration transferred as
    of the acquisition date on February 22, 2013 by Iona UK to Carrizo Oil
    was $146,678,000, and an additional deferred payment of $18,926,000 was
    due and payable to Carrizo Oil upon receipt of first oil revenues from
    the Huntington field. However, as a result of the slower than
    anticipated ramp up of production this payment was reduced to
    $12,762,000 payable on June 28th 2013 with the $6,164,000 balance being
    repaid over the period of future production until October 2013, at which
    time any outstanding balance must be paid in full. As of August 28, 2013
    $2,311,000 remained outstanding on the deferred payment. 

--  On July 29, 2013, the Company announced that due to the rapid growth in
    the company's operated and non-operated portfolio John Baillie has
    joined the organization as VP Developments. This organizational change
    will enable Dave Sherrard, Iona's former VP Developments to continue his
    association with the company as Reserve Advisor. 



Notes: 

Further details on the above are provided in the Consolidated Financial
Statements and Management's Discussion and Analysis for the quarter ended June
30, 2013, which have been filed with securities regulatory authorities in
Canada. These documents are available on the System for Electronic Document
Analysis and Retrieval (SEDAR) at www.sedar.com and on the Company's website:
www.ionaenergy.com. 


Iona is an oil and natural gas acquisition, appraisal, and development
corporation active through its 100% wholly owned United Kingdom subsidiary, Iona
Energy Company (UK) Ltd. in the United Kingdom's Continental Shelf ("UKCS").


Forward-looking statements

Some of the statements in this announcement are forward-looking, including
statements regarding Iona's plans for the development of its properties,
estimated production levels, anticipated effects of the UK small field
allowance, and estimates of the net present value of future net revenue of
proved and probable reserves from Iona's properties. Forward-looking statements
include statements regarding the intent, belief and current expectations of Iona
Energy Inc. or its officers with respect to various matters. When used in this
announcement, the words "expects," "believes," "anticipate," "plans," "may,"
"will," "should", "scheduled", "targeted", "estimated" and similar expressions,
and the negatives thereof, whether used in connection with estimated production
levels and future activity or otherwise, are intended to identify
forward-looking statements. Such statements are not promises or guarantees, and
are subject to risks and uncertainties that could cause actual outcome to differ
materially from those suggested by any such statements, including without
limitation, the risk that Iona's development plans change as a result of new
information or events, the risk that production rates at Huntington does not
increase as anticipated, or the risk that Iona does not increase its interest in
Trent & Tyne. These forward-looking statements speak only as of the date of this
announcement. Iona Energy Inc. expressly disclaims any obligation or undertaking
to release publicly any updates or revisions to any forward-looking statement
contained herein to reflect any change in its expectations with regard thereto
or any change in events, conditions or circumstances on which any
forward-looking statement is based except as required by applicable securities
laws.


Note: "Boe" means barrel of oil equivalent on the basis of 6 mcf of natural gas
to 1 bbl of oil. Boes may be misleading, particularly if used in isolation. A
boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not represent
a value equivalency at the wellhead. 


It should not be assumed that the present worth of estimated future net revenue
represents the fair market value of the reserves disclosed in this press
release. The reserve and related revenue estimates set forth in this press
release are estimates only and the actual reserves and realized revenue may be
greater or less than those calculated. The estimates of reserves and future net
revenue for individual properties may not reflect the same confidence level as
estimates of reserves and future net revenue for all properties, due to the
effects of aggregation. As used in this press release, "possible reserves" are
those additional reserves that are less certain to be recovered than probable
reserves. There is a 10% probability that the quantities actually recovered will
equal or exceed the sum of proved plus probable plus possible reserves.


Additionally, this press release uses certain abbreviations as follows:



Oil and Natural Gas Liquids       Natural Gas                              
-------------------------------   -----------------------------------------
bbls     barrels                  mcf      thousand cubic feet             
Mbbls    thousand barrels         mcf/d    thousand cubic feet per day     
MMbbls   million barrels          scf      standard cubic foot             
bbls/d   barrels per day          MMscf    millions of standard cubic feet 
bopd     barrels of oil per day   MMscf/d  millions of standard cubic feet 
                                           per day                         
NGLs     natural gas liquids      Bscf     billion standard cubic feet     



Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Iona Energy Inc.
Neill A. Carson
Chief Executive Officer
+011 (44) 7919 057989


Iona Energy Inc.
Graham Heath
Interim Chief Financial Officer
(403) 605-6726


Dave Ricciardi
Investor Relations
+1 403 978 4894
info@ionaenergy.com

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